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Home Jharkhand

Police Report Not Required for Cognizance in Cheque Bounce Cases: Jharkhand High Court

High Court clarifies under NI Act Section 142, cognizance in cheque bounce cases requires a written complaint, not police intervention.

Lagatar News by Lagatar News
November 22, 2024
in Jharkhand, Lagatar News
Police Report Not Required for Cognizance in Cheque Bounce Cases: Jharkhand High Court
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Lagatar24 Desk

RANCHI: The Jharkhand High Court ruled that police intervention is not required for taking cognizance in cheque bounce cases under Section 142 of the Negotiable Instruments Act (NI Act). The court further stated that under this provision, courts do not have the authority to direct police for investigation in such cases. Cognizance can only be taken based on a written complaint as specified under Section 142(1)(a) of the NI Act.

The Case Background

The petitioner faced allegations of issuing a cheque worth ₹10.82 lakh to the complainant, which was dishonored due to insufficient fundsin the petitioner’s bank account. After the cheque bounced, the complainant issued a legal notice to the petitioner.

The petitioner responded by arguing that the cheque should have been deposited only after obtaining prior approval. Subsequently, the complainant filed a case under Section 156(3) of the Criminal Procedure Code (CrPC), seeking police intervention for investigation. This was approved, leading to an FIR under IPC Sections 467, 468, 120B, and Section 138 of the NI Act.

Petitioner’s Arguments

The petitioner approached the High Court seeking quashing of the FIR, arguing:

•The charges of forgery under IPC Sections 467 and 468 were baseless.

•The matter strictly pertained to dishonoring a cheque and did not involve criminal conspiracy or forgery.

High Court’s Observations

Hearing the case, Justice Anil Kumar Choudhary noted:

1.NI Act Supremacy: Cognizance of offences under Section 138 of the NI Act can only be taken on the basis of a written complaint, not through police reporting or investigation.

2.No Police Role: The court emphasized that police intervention is unnecessary, as the matter is governed by specific provisions under the NI Act.

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